Shake Shack Inc. said on Thursday that its same-store sales rose 17.1 percent in the third quarter ended Sept. 30, continuing the burger chain’s strong sales showing following its January initial public offering.
Total revenue increased 67.4 percent in the quarter to $53.3 million from $30.2 million due largely to those same-store sales and new restaurant openings, including four in the quarter and 12 for the year.
“The third quarter marked another strong quarter in terms of same-Shack sales growth, as we continued to execute on our strategic plan and drive engagement with our guests,” CEO Randy Garutti said in a statement. He noted that the company expects to open at least 14 new locations next year. “We remain well positioned for continued success as we capitalize on our unique development opportunities.”
Shake Shack plans to enter four new markets next year, including West Hollywood, Calif., Scottsdale, Ariz., Phoenix and Dallas.
Net income in the quarter tripled to $1.5 million or 10 cents per share from $500,000 or 2 cents in the same period a year ago.
Restaurant-level operating profit more than doubled to $15.6 million from $7.6 million in the same period last year. And restaurant-level operating profit margins increased 530 basis points to 30.4 percent of revenues due to lower food costs and leverage on labor because of higher sales.
The company raised its outlook for annual revenue to $189 million to $190 million from $171 million to $174 million. It also said that same-store sales would be higher than expected for the year and now should be 11 percent to 12 percent.
Stock in the New York-based fast-casual burger chain rose about 6 percent in after-hours trading.
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